The Regulatory Conundrum: Achieving Corporate Governance Reforms in Developing Countries

Abstract

Based on an extensive review of existing literature, the chapter attempts to identify some unique characteristics of the developing markets with a view to understanding whether such socio-political and cultural traits may actually act as deterrents to the ongoing globalisation efforts Bangladesh is used as an example to highlight the distinctive characteristics of socio-political environment existing in many developing economies. Overall analysis suggests that the developing countries are different than developed economies. The corporate governance infrastructure in countries like Bangladesh has elements of both shareholder and stakeholder perspective, but none of them alone could solve the unique governance issues prevailing in developing countries. Also, low audit fees appear to be major hindrance of quality audit.